MARKET SEGMENTATION DEVELOPMENT FOR PUBLIC TRANSPORTATION

THERE IS AN OPPORTUNITY FOR PUBLIC TRANSPORTATION TO ARREST ITS DECLINE AND, PERHAPS, RESTORE PROFITABILITY. BUT TO TAKE ADVANTAGE OF THE OPPORTUNITY WILL REQUIRE A RADICAL SHIFT IN THE WAYS TRANSIT APPROACHES ITS MARKET AND MANAGES ITS OPERATIONS. THE CONTINUED DECLINE OF PUBLIC TRANSPORTATION, STARTING FIFTY YEARS AGO, HAS POTENTIAL FOR GROWTH. YET OTHER INDUSTRIES HAVE SUFFERED SIMILAR DECLINES, AND HAVE BHEEN ABLE TO RECOVER BY EXPANDING THEIR MARKET WITH A SERIES OF SPECIALIZED PRODUCTS. THE EVIDENCE INDICATES THAT TRANSIT COULD ALSO FOLLOW THIS COURSE, EARNING PREMIUM FARES, BY AUGMENTING ITS STANDARD SERVICE WITH SPECIAL SERVICES BASED ON A STRATEGY OF MARKET SEGMENTATION. SUCH AN APPROACH WOULD, HOWEVVER, BE ACCOMPANIED BY MORE COSTLY AND COMPLEX MANAGEMENT FUNCTIONS THAT MUST BE SPECIFICALLY PLANNED FOR. THE REPORT PRESENTS EXAMPLES OF NEW SPECIALIZED OFFERINGS FOR TRANSIT, AND A DISCUSSION OF BOTH SPECIFIC OPERATING PROBLEMS AND THE OVERALL QUESTION OF HOW TO MANAGE THE EMERGENCE OF A NEW MARKET STYLE BASED ON MARKET SEGMENTATION. /FHWA/

  • Supplemental Notes:
    • GRANT CA-11-0008 UMTA-CA-11-008-73-6
  • Corporate Authors:

    Stanford University

    Stanford, CA  United States  94305
  • Authors:
    • Reed, R R
  • Publication Date: 1973-8

Media Info

  • Pagination: 135 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00202235
  • Record Type: Publication
  • Source Agency: Urban Mass Transportation Administration
  • Report/Paper Numbers: Final
  • Files: TRIS, USDOT
  • Created Date: Jul 16 1974 12:00AM